Thoughts on Australia’s housing “bubble”

Media commentary has been dominated in recent weeks by talk of Australia’s growing “housing bubble.” This note attempts to provide a factual perspective. It suggests that while Sydney house prices are now starting to reach past peaks in terms of mortgage (un)affordability, they are still a little below their average long-run premium to national house

Read more

Understanding ETF liquidity

Exchange Traded Funds (ETFs) are well known for their low cost and diversification benefits, however, their level of liquidity and ability to closely track the price of the underlying securities they hold are advantageous for investors but tend to be less well known and sometimes misunderstood. To understand how ETFs maintain this ability, it is

Read more

Global Market Outlook: April 2017 – European Relief

Global stocks rose further in March, though more modestly than in February. While an earlier than expected Fed rate hike and Trump’s failure to pass healthcare reforms dented investor confidence, sentiment was supported by continued solid global economic reports and failure of the far-right parties to gain power in the Dutch national election. The outlook for

Read more

Give your portfolio the “EX” factor

When it comes to the Australian sharemarket, there are a couple of mantles Australians can claim over our international counterparts. Firstly, Australians have some of the highest levels of share ownership in the world, with 33% of us owning shares directly*.  Secondly, by global standards,  the concentration of this ownership in large-cap shares is relatively

Read more

Financials flex their muscles: what’s good for banks is good for the economy

The decision by major banks over recent weeks to unilaterally raise interest rates on residential property loans, especially for investors, appears to be officially sanctioned and could helpfully ease demand pressures in the Sydney and Melbourne housing markets. That said, greed can be good! These actions could also conveniently help boost bank net-interest margins, which

Read more